A group of nine insurance companies, reinsurers and brokers announced plans this week to create a micro insurance consortium and venture incubator (MVI), targeting the risk management needs of under-served markets.
The consortium — which consists of
AIG,
Aspen Insurance Holdings, Catlin Group,
Guy Carpenter,
Marsh & McLennan, Hamilton Insurance, Transatlantic Reinsurance, XL Group and
Zurich — will launch 10 micro insurance ventures over the next 10 years.
The products are targeted toward emerging markets in developing countries, particularly in Latin America, Africa and emerging Asia.
“These ventures will provide the business services necessary to achieve scale and profitability in the market including: unique distribution methods, local partnerships, product development and impact services such as measuring/monitoring social impact,” the MVI said in the announcement.
The initial venture will be launched this year, with Joan Lamm-Tennant, global chief economist and risk strategist for Guy Carpenter, serving as the MVI’s CEO from her post in New York.
“Our differentiated strategy is to learn and respond to the risk needs of the underserved,” Lamm-Tennant said. “By forging strategic alliances with entities that have direct and trusted relationships, we will understand the needs of the customer, and subsequently identify specific ventures and solutions accordingly.
“I am excited about this unique business model.”
